The Recession We Need To Have
Economics Explained
00:00
Why Do We Need Recessions?
There are two broad classifications of economic down turns that we experience, demand and supply down turns. Demand is a function of consumers, businesses or government entities who are willing and able to buy a good or service. Government can intervene in this loop by injecting money into the system to compensate for falling household incomes and consumarical confidence. Countercyclical monetary policy has been used for decades now to smooth out the debt cycle. But as we saw earlier, it's much harder for governments to stimulate supply because their domain isn't really theirs.
Transcript
Play full episode
